William Howe, chief executive of copper and gold explorer Metminco Limited (LON:MNC ASX:MNC) says the US$45mln farm–out deal it announced yesterday of its of its Los Calatos project in Peru will allow it to complete the feasibility study.
He tells Proactive Investors that this will in turn “add an enormous amount of value to the project”.
A binding terms sheet has been signed with natural resources fund CD Capital Fund III that will see the money received in 3 tranches to pay for pre-feasibility and feasibility studies over the next 3-4 years.
Howe says the feasibility study could add “12 to 15 times the current capitalisation of the company, so from the point of view of Los Calatos it is a very big deal for Metminco”.
